I think I just tracked it down to the release.iso image I built with
with r251956. I tried an older release.iso and it didn't hang. I'll
double check with a recent build and see if this continues or not, I
suspect it's just a problem with that build.

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Is this just me? When I start a new bhyve instance, it hangs on /sbin/init.
top shows bhyve consuming about 1 host core of CPU. This is on a real recent
current.

I don't see it on my system with this:
FreeBSD 10.0-CURRENT (GENERIC) #0: Sun Jun 23 02:55:37 UTC 2013
My system has a much lower clock speed that yours - 2GHz versus
3.2GHz, but other than that I kept everything else similar to your
setup.
Is this a new system or were you able to use this successfully in the
past to run bhyve?
best
Neel